Capri Global Capital Limited · NSE:CGCL
Capri Global Capital — Investor Presentation (August 2023)
40 slides from Capri Global Capital's investor presentation, August 2023
Slide 1: Corporate Presentation
Corporate Presentation August 2023 C A P R I GFollow L O B A Lus: 1
Slide 2: Capri Global: Profitable Lending With Social Impact
Capri Global : Profitable Lending With Social Impact A NBFC with presence across high growth segments like MSME, Affordable Housing, Construction 01 Finance segments, Car Loan distribution; forayed into Gold Loans in Aug’22. Promoted by first generation entrepreneur, Mr. Rajesh Sharma, CGCL is liste
Slide 3: Capri Global: Our Journey
Capri Global: Our Journey 2022 Announced foray into Gold Loans in 2021 Feb’22, business Commenced third launched in Aug’22 party distribution 2017 of new car loans; Forayed into announced co- Housing Finance lending tie-up with 2013 business vertical SBI & Union Bank. Ventured into fully secured MSM
Slide 4: Uniquely Positioned: Scalable Model to Drive Profitable Growth
Uniquely Positioned : Scalable Model to Drive Profitable Growth Leveraging Inherent Strengths… To Capture Future Opportunities… Multi Layered Technology Disrupting Retail Focused Model Credit Approach Traditional Ways of Lending Efficiently Managed Secured Lending Fast Growing Indian Economy Liabili
Slide 5: Capri Global: Granular & Retail Lending
Capri Global : Granular & Retail Lending Scale of Distribution^ Granular Book Asset Quality Liability Profile Profitability@ Operations 100% Secured ₹ 112 Bn / ₹ 103 Bn 849 Loan Book 1.9% 21 7.0% / 6.4% AUM in Q1FY24 / FY23 Number of Branches Gross NPA Lender Relationships Spreads in Q1FY24 / FY23 6
Slide 6: Business Overview: Diversified Product Profile
Business Overview: Diversified Product Profile Gold Loans Construction MSME Housing Fin. Finance Indirect Lending Distribution Product portfolio: Product portfolio: Product portfolio: Product portfolio: Product portfolio: Product portfolio: Home loans for – Loan against gold Construction-linked Fina
Slide 7: Diversified AUM: Strong and Sustained Momentum
Diversified AUM: Strong and Sustained Momentum AUM Segmental Break Up (₹ Mn) AUM Segmental Break Up (%) 2.7x CAPRIGLOBAL 7
Slide 8: Disbursals: New Growth Drivers Adding Momentum
Disbursals: New Growth Drivers Adding Momentum Disbursals Segmental Break Up (₹ Mn) Disbursals Segmental Break Up (%) CAPRIGLOBAL 8
Slide 9: MSME Lending: A Large Unexplored Opportunity
MSME Lending: A Large Unexplored Opportunity MSMEs A Key Contributor To Share of NBFCs in MSME Credit Rising Huge Addressable Credit Gap in MSME India’s GVA (%) 31.8 32.3 32.2 32.8 FY17 FY22 30.5 30.5 26.8 INR MSME 17.3 Tn Systemic 10.9 Tn 23.1 Tn INR Credit (INR) 19.4 Tn INR 52.0 Tn Non-Banks Marke
Slide 10: MSME Lending: Small Loans, Big Opportunity
MSME Lending: Small Loans, Big Opportunity Geographical Distribution (Value-Wise) Focus Area ❑ Self Employed Individuals – Provision stores, retail outlets, handicrafts etc. ❑ Small enterprises with inadequate income documentation proof; Sourced directly. ❑ In-house sourcing team – 150 Branches; 100
Slide 11: Affordable Housing: Long Term Structural Drivers Intact
Affordable Housing: Long Term Structural Drivers Intact Mortgage Penetration Consistently Rising HFCs Performing Well In A Competitive Scenario Outstanding (Rs.Bn.) Growth Disbursements (Rs.Bn.) Growth Individual HL Portfolio FY21 FY22 (% YoY) FY21 FY22 (% YoY) HFCs 7,143 8,054 12.8 1,913 2,614 36.7
Slide 12: Housing Finance: Capitalising on Affordable Housing Opportunity
Housing Finance: Capitalising on Affordable Housing Opportunity Focus Area Geographical Distribution (Value-Wise) ❑ Serves middle and lower middle income population in Tier 2 and 3 cities through a network of 127 branches. ❑ Ventured in 2016 through wholly-owned subsidiary – Capri Global Housing Fin
Slide 13: Lending As Service: Co-Lending - Huge Growth Opportunity
Lending As Service: Co-Lending - Huge Growth Opportunity Increasing Mix of Off Book AUM 2% 3% 3% 5% 5% 6% Co-originating loans in the MSME and Affordable Housing 98% 97% 97% 95% 95% 94% segment with partner banks based on RBI’s co-lending mechanism Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Spread an
Slide 14: Gold Loans: Rising Stock Of Monetizable Gold
Gold Loans: Rising Stock Of Monetizable Gold Consumer Gold Demand in India Robust Across Share of Jewellery in Consumer Gold Demand Gold Prices in India (Rs‘000/10g) – Gold Has Years (Tonnes) High and Stable (%) Been A Store Of Value 45.4 42.2 42.8 959 79 79 77 78 77 78 833 857 75 76 771 760 797 774
Slide 15: Gold Loan: Significant Opportunity For Organised Players
Gold Loan: Significant Opportunity For Organised Players Large market expected to GL Market Dominated By Pvt Banks, NBFCs Gaining Share grow at ~15% Unorganised Players Gold loan market (INR Tn.) Gold Loan Market Share1 5.9 14-16% 5% 4% Urban Co-op Banks 35% 13% 14% Pvt Banks +12% 3.3 44% 42% PSU Ba
Slide 16: Capri Gold Loans: Products Inspired By Service & Trust
Capri Gold Loans : Products Inspired By Service & Trust CAPRI SERVICE PROPOSITION MINIMUM DOCUMENTATION INSTANT DISBURSAL – TURNAROUND TIME 30 MINUTES ATTRACTIVE ROI WITH NO HIDDEN CHARGES LOAN VALUE STARTS FROM AS LOW AS Rs3,000/- DEDICATED RELATIONSHIP MANAGER – BECAUSE COMFORT IS IMPORTANT! TRUST
Slide 17: Gold Loans: Scaling Up Fast
Gold Loans : Scaling Up Fast AUM To Cross ₹ 30bn in FY24 Geographical Distribution (Value-Wise) ❑ CGCL launched its gold loan business in August 2022 through a network of 108 branches ❑ Network expanded to 562 branches in Mar’23 and further to 680 branches in Q1FY24, to touch 750 branches in Q2FY24.
Slide 18: Construction Finance: Building a Sustainable Future
Construction Finance: Building a Sustainable Future Focus Area Geographical Distribution (Value-Wise) ❑ Construction linked loans to small and midsize real estate developers. ❑ Comprehensive framework for project selection and credit appraisal. ❑ Strong monitoring mechanism for end-use tracking and
Slide 19: Car Loan Distribution: Pan-India Distributor
Car Loan Distribution: Pan-India Distributor Partner Banks Pan-India coverage through presence in 714 locations in 32 States & UTs Total Locations (Branches + Feet-on-Street) Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 279 322 322 450 714 Note: Political map of India not to scale CAPRIGLOBAL 19
Slide 20: Car Loan Origination – Strong Growth Performance
Car Loan Origination – Strong Growth Performance Consistently Rising Loan Originations (₹ Mn)^ Loan Originations Full Year Basis (₹ Mn) Loan Originations By Volume (Nos.)^ Average Ticket Size (₹ Mn) * ^Provisional data pertaining to FY23 quarters has been re-stated. * ATS = Originations by Value / O
Slide 21: Well Capitalized For Medium Term Growth
Well Capitalized For Medium Term Growth Consolidated Networth (₹ Mn) Capital Adequacy (%)* CGHFL Surplus Inv. In CGHFL (incl. premium) CGCL CGHFL 13,827 15,392 17,173 19,225 35,655 36,314 50.8 47.0 43.5 39.9 38.15 38.0 37.7 37.15 34.2 33.1 31.2 29.5 30,466 30,925 14,645 13,077 14,523 11,755 3,250 3,
Slide 22: Capri 2.0 | Scale And Profitability
Capri 2.0 | Scale And Profitability Aim to reach ₹ 300bn AUM by FY27E Scaled-up Diversified NBFC Sizeable diversified play Maturity ❑ Rapid scale-up of business ❑ New products (Car Loan ❑ Deeper penetration of existing Distribution, Co-Lending, Gold products Starting Point Loans), markets, and chann
Slide 23: Technology: Building Support Infra for Capri 2.0
Technology: Building Support Infra for Capri 2.0 Key Technology Enablers In-House Tech Artificial Machine Data Team Intelligence Learning Analytics Key Outcomes In Near Future CLM Analytics DSA Platform Customer Entire Tech Built Own OCR Built Own Data To create an Model Footprint and KYC Analytics
Slide 24: Collections: Leveraging Digital & Analytical Capabilities
Collections: Leveraging Digital & Analytical Capabilities 1 Artificial Intelligence Based Bot Calling to Customers 2 State-of-the-Art Tele-calling Set-up With Automated Calling 3 Incentive Gamification Tool for Collections Employees Extensive leverage of strong Digital and 4 Live Collections Analyti
Slide 25: Collections: Strengthened Engine With Strategic Pillars
Collections: Strengthened Engine With 3 Strategic Pillars ❑ Trainings for courtesy & problem-solving led communications Best-in-class Customer Engagement Quality ❑ Live monitoring of customer discussions with on-roll trainers ❑ Monthly tracking of contacts made, invalid repayment accounts and custom
Slide 26: Healthy Financial Performance Over The Years…
Healthy Financial Performance Over The Years… C/I (%) : Impacted By Gold Loan Opex; NII (₹ Mn) Spreads (%)1: Cycle Turning Adj. C/I Ratio 50% in Q1FY24 6,362 63.4 66.0 6.9 7.0 5,087 6.8 46.6 3,872 3,848 6.4 38.4 40.1 3,236 6.2 35.2 2,370 5.8 FY19 FY20 FY21 FY22 FY23 Q1FY24 FY19 FY20 FY21 FY22 FY23 Q
Slide 27: NPA Analysis: Steady Improvement
NPA Analysis: Steady Improvement ₹ Mn except stated otherwise ECL Analysis As Per IndAS FY23 FY22 FY21 FY20 FY19 Stage 1 & 2 - Gross 95,985 63,627 45,411 39,151 40,431 Stage 1 & 2 - ECL Provisions 1,258 1,325 452 308 211 Stage 1 & 2 - Net 94,727 62,303 44,958 38,843 40,220 Stage 1 & 2 - ECL Provisio
Slide 28: Asset Quality: Steady Improvement Over Quarters
Asset Quality : Steady Improvement Over Quarters INR Mn except stated ECL Analysis As Per IndAS (INR Mn) Q1FY24 Q4FY23 Q3FY23 Q2FY23 Q1FY23 Stage 1 & 2 - Gross 103,339 95,985 80,588 73,508 65,953 Stage 1 & 2 - ECL Provisions 1,379 1,258 1,234 1,248 1,260 Stage 1 & 2 - Net 101,959 94,727 79,354 72,26
Slide 29: CGCL Cons. Inc. Statement: Quarterly Comparison
CGCL Cons. Inc. Statement : Quarterly Comparison ₹ Mn except stated Particulars Q1FY24 Q1FY23 Y-o-Y (%) Q4FY23 Q-o-Q (%) Interest earned 4,134 2,361 75% 3,521 17% Interest expended 1,765 1,021 73% 1,637 8% Net interest income 2,370 1,339 77% 1,884 26% Non-interest income 805 409 97% 929 -13% Net car
Slide 30: CGCL Consolidated Balance Sheet
CGCL Consolidated Balance Sheet* ₹ Mn except stated Particulars (INR Mn) Q1FY24 Q1FY23 YoY (%) Q4FY23 QoQ (%) Paid-up equity 412 351 17.3% 412 0.0% Reserves and surplus 35,901 19,350 85.5% 35,242 1.9% Networth 36,314 19,701 84.3% 35,655 1.8% Bank borrowings and refinance 72,079 49,296 46.2% 70,727 1
Slide 31: CGCL Consolidated Income Statement: Annual Comparison
CGCL Consolidated Income Statement : Annual Comparison ₹ Mn except stated Profit and Loss A/c FY19 FY20 FY21 FY22 FY23 Interest income 5,307 6,700 6,735 8,396 11,673 Interest expenses 2,071 2,828 2,887 3,308 5,311 Net interest income 3,236 3,872 3,848 5,087 6,362 New businesses contributing to robus
Slide 32: CGCL Consolidated Balance Sheet: Annual Comparison
CGCL Consolidated Balance Sheet : Annual Comparison* ₹ Mn except stated Balance Sheet FY19 FY20 FY21 FY22 FY23 Liabilities Paid-up equity 350 350 351 351 412 Reserves 13,477 15,042 16,822 18,873 35,242 Ample Networth 13,827 15,392 17,173 19,225 35,655 leverage room to continue Borrowings 27,687 28,3
Slide 33: CGCL Consolidated Earnings: Du Pont Analysis
CGCL Consolidated Earnings : Du Pont Analysis RoA Tree (%) FY19 FY20 FY21 FY22 FY23 Interest income 14.6 15.4 13.1 13.0 12.3 Interest expenses 5.7 6.5 5.6 5.1 5.6 Net interest income 8.9 8.9 7.5 7.8 6.7 Other income 1.6 1.0 1.2 1.9 2.9 Fees 1.5 0.9 1.2 1.7 2.9 Other income 0.1 0.1 0.0 0.2 0.0 Net in
Slide 34: ESG at Core: Growing Responsibly
ESG at Core: Growing Responsibly Environment Social Governance ❑ Introduction of Sales Mobility app has ❑ Facilitating income generating loans and ❑ Executive Management overseen by an digitized 50% of loan origination to disbursal housing loans for self-employed and non- independent Board of Direct
Slide 35: CSR: Serving the Underprivileged
CSR: Serving the Underprivileged 81,840 33,647 Health Initiatives Sustainable Livelihood 5,787 4,000 2,237 1,500 Education Initiatives Sustainable Environment Animal Welfare Integrated Rural Development Note: All figures relate to the number of beneficiaries / projects / initiatives under CGCL’s CSR
Slide 36: Board of Directors & Corporate Governance
Board of Directors & Corporate Governance Independent Board Guides Executive Management Rajesh Sharma, MD & CFO Ajit Mohan Sharan, Independent Bhagyam Ramani, Independent Founder & Promoter with over 2.5 Director Director decades of experience, Chartered IAS - Batch 1979 with over 3 decades Ex- GM a
Slide 37: Leadership Team
Leadership Team Retail Retail Corporate Functions Amar Rajpurohit (Business Head – Bhupinder Singh (Head – Legal Ashok Agarwal (Director – Legal & MSME & Housing – Sales/Product) Litigation) More than a decade Compliance) Previously practicing Ex-AU Financiers, Gruh Finance, experience with various
Slide 38: Shareholding
Shareholding o Market capitalization1 : ₹ 161.4bn | US$ 1.95bn2 o Cons. Networth3 (Q1FY24) : ₹ 36.3bn o Paid-up Equity : ₹ 412.3mn 15.7% Promoter Group o FV : ₹ 2 14.4% Institutional Shareholders o Dividend Per Share Other Public Shareholders (FY23) : ₹ 0.50 69.9% 1. Average of market capitalization
Slide 39: Disclaimer
Disclaimer This presentation and the accompanying slides (the “Presentation”), which have been prepared by Capri Global Capital Limited (the “Company”), have been prepared solely for information purposes only and does not constitute any offer or invitation, directly or indirectly, in any manner, or
Slide 40: Thank you
Thank you For further information, please contact: Ravikant Bhat [email protected] T: +91 72089 52880 Sheetal Khanduja Rajat Gupta [email protected] [email protected] M:+91 97693 64166 M: +91 99718 97739 CAPRIGLOBAL 40
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